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igomit [66]
3 years ago
8

SuperSports Inc.reported pretax financial income of $260,000 for the year 2016. Taxable income of SuperSports is however differe

nt from its pretax financial income because of the items given below.
Depreciation deducted on the tax return is $40,000 greater than the depreciation charged on Income Statement.
Estimated Warranties Expenses charged to Income Statement is $30,000 but Warranties expenses deductible on tax return are $20,000
$3,200 appear in the income statement of SuperSports as Fines and penalties paid.
SuperSports received $ 6,000 interest from Tax Saving Municipal Bonds.
Enacted Tax Rate for the year 2016 is 30% and for 2017 is 35%

Required: For the year 2016, SuperSports Inc. requests you to:

Identify items of permanent and temporary difference from the information given
What items of temporary difference result in future taxable amounts and what items will result in future deductible amounts
Compute Taxable Income
Compute current income tax expense/Tax payable
Compute deferred taxes ( Deferred Tax Liability and Deferred Tax Asset)
Record journal entry for Income Tax Expense
Show how deferred taxes will be reported in the Balance Sheet.
Business
1 answer:
CaHeK987 [17]3 years ago
8 0
900009 It’s allisongiglio11
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A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be
pashok25 [27]

Answer:

     NPV  =$ 60,311.80

Explanation:

<em>The net present value (NPV) of a project is the present value of cash inflow  less the present value of cash outflow of the project.</em>

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

                                                  0                  1                   2                 3          

Operating cash flow                                136,000     136,000    136,000

Initial cost                              (274,000)

Working capital                     (61,000 )                                          61,000

Salvage value                        <u>               </u>    <u>             </u>      <u>           </u>      1<u>5000  </u>              

Net cashflow                     <u> (335,000)  136,000      136,000      212,000.</u>

PV  inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

       =  395,311.80

NPV =395,311.80 -335,000

       =$ 60,311.80

3 0
3 years ago
The phase of the business cycle that includes a period of decline in GDP and
Anarel [89]

Answer:

Contraction:

Explanation:

The contraction period is the time between the peak  (highest growth rate) and the trough ( the lowest growth rate).  At contraction, the GDP value declines from its peak to the lowest or negative growth rate. Contraction means a shrink in economic activities.

During contraction, the unemployment rate rising as employers lay-off workers due to reduced demand. Incomes and profits decline, and the GDP value decreases to low or negative values. The contraction period starts with a recession, which is a decline in GDP value for two consecutive quarters.

4 0
3 years ago
Read 2 more answers
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